International Advances in Economic Research

, Volume 7, Issue 4, pp 431–442 | Cite as

Charitable contributions and tax price elasticities for nonitemizing taxpayers

  • David H. Eaton

Abstract

This paper uses a balanced panel of taxpayers to examine the price and income elasticities for charitable contributions for nonitemizing taxpayers. One-way and two-way static fixed effects models are used to estimate these elasticities. Additionally, this paper incorporates dynamic panel analysis within the constraints of the data. The data are from the Individual Tax Model File panel of taxpayers, maintained by the University of Michigan. This paper finds no significant price elasticities for nonitemizers. The results of this paper would argue that there is no compelling economic reason to extend charitable contribution deductions to nonitemizers.

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Copyright information

© International Atlantic Economic Society 2001

Authors and Affiliations

  • David H. Eaton
    • 1
  1. 1.Murray State UniversityUSA

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